How oil-dependence truncated Nigeria’s development | The Guardian Nigeria News - Nigeria and World News

It is the devil’s excrement. We are drowning in the devil’s excrement. —Juan Pablo Pérez Alfonso, Founder OPEC. It has evolved into one of the least economically diversified country in the world because of a pathological dependence on oil export earnings. The COVID-19 pandemic exposed the dangers of such dependence in ways never experienced in the past.

On the other hand, Nigeria’s pathology of oil dependence became entrenched over time. Nigeria’s oil exports in 2019 were 94.1% of total exports, oil rents amounted to 9% of GDP. The poorly diversified structure of the Nigerian economy reveals a constrained export revenue of the country. The oil and gas sector make only a small contribution to GDP despite generating the majority of export earnings.

Effectively, Nigeria is a consumption nation. It is not a production nation. Oil-dependence truncated Nigeria’s industrialization and by implication its development. How is that? The faster the growth of manufacturing, the faster the growth of a nation’s GDP . This is why Nigeria ranks 99th on UNIDO’s Competitive Industrial Performance index while South Africa, ranked 52nd in 2020.

How did a potential treasure find turned to a curse? To be sure, oil abundance is not by itself a curse or a blessing. What determines the development trajectory of such a treasure include the nature of a country’s political economy, policies and the institutional context within which the country operates. Oil in Nigeria became a curse for four reasons among others.

While other countries are rising and exploring numerous was of strengthening their economy my beloved nigeria is still hanging behind with oil. We only have potential plans on sheets if papers with less or no action towards implemention.

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